New Delhi: Household budgets have been hit again as onion prices have soared following an acute shortage in supply. Onion prices are a whopping Rs 70 to 80 per kg in the national capital. In Kashmir too, onions are priced at Rs 80 per kg. Onion prices in the retail market in Navi Mumbai stand at Rs 70 per kg. In Bhopal, onions cost Rs 65 per kg and in Patna Rs 50 per kg.
The Central government has directed all state governments, including Maharashtra, to take action against traders and speculators keeping onion prices artificially high by taking advantage of the seasonal shortage. Onion prices both in wholesale and retail markets in most parts of the country have seen a sharp increase since July. "All states and Union Territories have been asked to take action against traders/speculators creating artificial price increase of onion taking advantage of seasonal shortage," a senior Consumer Affairs Ministry official said.
The Centre has directed states to take action against traders who create an artificial shortage of onions and is considering curbs on overseas sales by increasing the minimum export price to USD 900 a tonne. The National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) had proposed to increase the minimum export price of onions to USD 900 a tonne from the current level of USD 650 a tonne to restrict outbound shipments, sources said.
Maharashtra, where maximum onion is stored for use in lean season, has been asked to ensure steady supply of the staple vegetable in the consuming markets, the official said. The state government has been directed to intimate the Centre if there is any blockage in supply chain as that can cause price rise, the official added.Onion prices are under pressure even in the current month as 90 percent of stored onions of last year's crop are exhausted and there is only 3-4 lakh tonnes available for consumption, the Ministry said in the status report on onion.
Around 27.5 lakh tonnes of onion were stored in the country for consumption in 2013. Of this, 15.50 lakh tonnes were kept in godowns in Maharashtra, 1-2 lakh tonnes each in Gujarat, Bihar, Karnataka, Madhya Pradesh, Uttar Pradesh, Rajasthan and Tamil Nadu, it said. Normally, stored onions are consumed during lead period of June-August. The prices continue to rule high as supply of fresh crops from Karnataka and Andhra Pradesh has not been in full swing yet due to delayed harvesting in the wake of rains.
"The onion price situation depends on production and market arrivals. Prices tend to peak during September-November and fall during January-March every year. Generally, onion storage gets depleted by August-September," the report said. The harvesting of early kharif crop in Andhra Pradesh, Karnataka and Tamil Nadu is continuing. Arrival of fresh crop from these states are expected to increase further in the coming days, it added.
Meanwhile, the New Delhi government on Wednesday alleged that hoarding of the kitchen staple in Madhya Pradesh, ruled by the saffron party, has resulted in escalation of its rates in the city. Delhi's food and supplies minister Harun Yusuf, slamming BJP for politicising the issue, accused the Madhya Pradesh government of not taking action against hoarders in the state "with a purpose". The minister even went on to say that going by the price of onion under BJP rule in Delhi 15 years ago, it should have "risen to Rs 700 per kg" now. elhi gets supply of onion from a number of states including Madhya Pradesh and Maharashtra.
"We get supply of onion from Madhya Pradesh, Maharashtra and a number of states. The supply of onion to Delhi has been affected also due to large scale hoarding in Madhya Pradesh. I think they are doing it with a purpose," Yusuf said. He said Delhi government has again started selling the vegetable at Rs 60 per kg at 1,000 points across the city through mobile vans. "The BJP is politicising the issue which is very unfortunate. I appeal to the Madhya Pradesh government to come down hard on hoarders. The BJP should not take help of onion prices to win election in Delhi," said Yusuf.
